What happens to Virgin Holidays if Virgin Atlantic goes bust?

Hobbes

DIS Veteran
Joined
Sep 9, 2005
I can't be the only one worrying about this-today should have been the first day of our holiday. We have accepted it was cancelled but we were intending to rebook for a Disneyland glide in October-should we get our money back quickly before VA folds -can it take VH with it?
 
I'm worried about the same. We've only booked flights direct with VA and our trip isn't until September though. Am I wrong to assume we'd get our money back in any case if it's been paid either partly or fully with a credit card? I hope so because I paid for our tickets with a credit card.

It's so typical that this one time we decided to splurge and get first class on the return leg, we have to worry about wether the trip will go ahead or wether we'll get a full refund or not.
 
Your cases are very different. Holidays made with Virgin Holidays would be ABTA bonded, so cash with them protected by that scheme. The only question could be if you have accepted a travel voucher. I think is a more unknown area. Martin Lewis seems to think if you paid by card you’d still be protected by the card but I’m not so sure as I’ve not seen this tested. But I’ve no reason to believe Martin Lewis is wrong, I generally trust what he says on things like this. One of my issues is if debit card chargeback I would have thought you need them to have money in their bank account, I do not believe the bank is directly/jointly liable but could be wrong.

Bookings flight only however are not ATOL protected. So you would be relying on card payment protection. If paid by credit card then section 75 should cover you. As above if debit card I’m not sure you would be covered.

just because Virgin Australia has failed does not in itself mean the U.K. business will as well. From what I’ve seen it feels like the UK arm is slightly better placed. It does need a cash injection, but Branson is asking for a loan and offering his island as security, I would have thought this ought to aid a deal being done. The problem is the government would not want to be seen to aiding 1 company over another. There are other airlines that are known to have threatened legal action at previous proposed bailouts. The question I guess is whether a loan is considered a bailout rather than an equity based actual bailout. My gut is the UK airline will survive, but it is just a gut.

Good luck
 
Well its a risk you take. If you are okay with possibly loosing the money then don't worry. If you don't want you loose your money then I would ask for a refund while you have a chance to get the money back.
 


The fact that easyJet have received a bailout, I have confidence virgin Atlantic will but that's just my opinion
 
I'm worried about the same. We've only booked flights direct with VA and our trip isn't until September though. Am I wrong to assume we'd get our money back in any case if it's been paid either partly or fully with a credit card? I hope so because I paid for our tickets with a credit card.

It's so typical that this one time we decided to splurge and get first class on the return leg, we have to worry about wether the trip will go ahead or wether we'll get a full refund or not.

If you paid by credit card you can claim a refund if the company goes bust. It could take a few months for you to receive it.
 
Virgin Atlantic is a totally separate company to Virgin Holidays. If there is a material change then you would be entitled to a refund.
Virgin Hols may book you with Delta instead as they part own VAA.
But anything over £100 you should pay on credit card as its covered under S.75 of the Consumer Credit Act 1974
 


Virgin Atlantic is a totally separate company to Virgin Holidays. If there is a material change then you would be entitled to a refund.
Virgin Hols may book you with Delta instead as they part own VAA.
But anything over £100 you should pay on credit card as its covered under S.75 of the Consumer Credit Act 1974
To be clear you only have to spend 1p on a credit card to be fully covered under section 75 if the cost of the purchase is £100 or more.

While they could book on other airlines, not just Delta, let’s be honest if Virgin went bust the holidays business is very likely to follow too. Customers would likely go elsewhere.
 
To be clear you only have to spend 1p on a credit card to be fully covered under section 75 if the cost of the purchase is £100 or more.

While they could book on other airlines, not just Delta, let’s be honest if Virgin went bust the holidays business is very likely to follow too. Customers would likely go elsewhere.

I agree. But I would always recommend making any purchase over £100 on credit card for protection reasons!
 
I am waiting two refunds, one from Virgin atlantic for a flight cancellation, one from virgin holidays for a Disney holiday.. the VA has now been 60 days and the VH at 20.. My credit card is a virgin atlantic credit card so hopefully that won't be affected.

whats annoying is BA refunded me for a holiday within 3 days.
 
I am waiting two refunds, one from Virgin atlantic for a flight cancellation, one from virgin holidays for a Disney holiday.. the VA has now been 60 days and the VH at 20.. My credit card is a virgin atlantic credit card so hopefully that won't be affected.

whats annoying is BA refunded me for a holiday within 3 days.
Your credit card while Virgin branded is really nor Virgin at all. It is managed by another company just badging it up.

BA have cash. So it is easier for them to do the right thing. All those without much cash will do what they can to keep it.
 
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Virgin Atlantic is a totally separate company to Virgin Holidays. If there is a material change then you would be entitled to a refund.
Virgin Hols may book you with Delta instead as they part own VAA.
But anything over £100 you should pay on credit card as its covered under S.75 of the Consumer Credit Act 1974

Is a change of departure airport a material change?
 
We can offer amazing fares on both Virgin Atlantic and Delta Air Lines® to over 200 worldwide destinations. ABTA Statement: ... We are a member of ABTA which means you have the benefit of ABTA's assistance and Code of Conduct. We provide full financial protection for your money.
 

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